Reviewing Lulu’s Fashion Lounge (NASDAQ:LVLU) & NaaS Technology (NASDAQ:NAAS)

Lulu’s Fashion Lounge (NASDAQ:LVLU) and NaaS Technology (NASDAQ:NAAS) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Risk & Volatility

Lulu’s Fashion Lounge has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, NaaS Technology has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Lulu’s Fashion Lounge and NaaS Technology, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lulu’s Fashion Lounge	1	0	0	0	1.00
NaaS Technology	1	0	0	0	1.00

Profitability

This table compares Lulu’s Fashion Lounge and NaaS Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lulu’s Fashion Lounge	-3.17%	-946.15%	-8.73%
NaaS Technology	N/A	N/A	N/A

Valuation & Earnings

This table compares Lulu’s Fashion Lounge and NaaS Technology”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lulu’s Fashion Lounge	$282.28 million	0.16	-$13.71 million	($2.94)	-5.45
NaaS Technology	$125.14 million	0.46	-$62.77 million	($87.84)	-0.04

Lulu’s Fashion Lounge has higher revenue and earnings than NaaS Technology. Lulu’s Fashion Lounge is trading at a lower price-to-earnings ratio than NaaS Technology, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

73.8% of Lulu’s Fashion Lounge shares are owned by institutional investors. Comparatively, 1.8% of NaaS Technology shares are owned by institutional investors. 7.8% of Lulu’s Fashion Lounge shares are owned by insiders. Comparatively, 18.0% of NaaS Technology shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

NaaS Technology beats Lulu’s Fashion Lounge on 7 of the 11 factors compared between the two stocks.

About Lulu’s Fashion Lounge

Lulu’s Fashion Lounge Holdings, Inc. engages in providing an online website for clothing. It offers retailing of women’s clothing, shoes, and accessories. The company was founded in 1996 and is headquartered in Chico, CA.

About NaaS Technology

NaaS Technology Inc. provides electric vehicle (EV) charging services in China. The company offers integrated online EV charging solutions to charging stations, including mobility connectivity services through Kuaidian; SaaS products, such as traffic support and management, marketing, payment, chargers’ management, order management, load management, and membership management. It also provides offline EV charging solutions comprising site selection, hardware procurement, engineering, procurement, and construction, station maintenance, energy storage, and customer support services. In addition, the company offers electricity procurement services to charging stations, as well as other amenities and ancillary services, such as vending machines, massage chairs, and car wash tunnels. It serves charger manufacturers, EV OEMS, and end-users. NaaS Technology Inc. is headquartered in Beijing, China.